Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (1323)	10/21/2005 1:43:57 PM
From: orkrious	Respond to of 220216

but total ad spend will go up. I'm not sure I buy that. Budgets are tight. Unless there is a reason why more ad dollars will pay off, I don't see why more ad dollars will be spent.

To: energyplay who wrote (1323)	10/22/2005 3:25:24 AM
From: Maurice Winn	Respond to of 220216

Good point EP. I hadn't thought of that, but it's right: <Not only is there a big shift in ad dollars from conventional media to targeted online, but total ad spend will go up. > Advertising is normally inefficient, so a lot of advertising has to be done by other means, such as word of mouth, more retail outlets for point of presence advertising, and so on. With precisely targeted advertising, the bang per buck goes up. So more advertising is economic and spending can be diverted from other activities which do the same job, such as having sales representatives, extra shops or whatever other mechanism other than advertising in media is used to generate sales. I can imagine that there might be a doubling of advertising spending. Heck, maybe even more. Maybe it would triple, or quadruple. Hmmm. Food for thought. Damn, I wish I'd thought of that BEFORE Google listed. I've thought for almost a decade that advertising in cyberspace would be huge. But I didn't think of that turbo-charging effect. Thanks for pointing it out. One of the great things about SI and cyberspace; gems pop out now and then. So, if total global advertising spend for all media is added up, how much is that? If it is tripled and moved to cyberspace, how many $$ per market capitalisation of all advertising companies is that? That would tell us whether the current market capitalisations of cyberspace advertising companies is too much or too little. I suspect it's much too low. In which case I should buy all companies listed; Yahoo! Google, Amazon, eBay and whatever. Or perhaps pick the better ones which have the best looking technology. Mqurice PS: Don't mention it to anyone so we can buy the companies before others figure it out. Hmmmm, I wonder if Google's share price means everyone except me has already figured it out.